• Argo Blockchain recently revealed that it has no exposure to the shuttered SVB and Silvergate banks.
• The Federal Deposit Insurance Corporation (FDIC) approved the transfer of Signature Bank’s assets to Signature Bridge Bank.
• All borrowers and depositors in Signature Bank will now be customers of the new Signature Bridge Bank.
Argo Blockchain Confirms No Exposure To Shuttered Banks
Argo Blockchain PLC recently issued a statement confirming that neither the Argo blockchain nor its subsidiaries are exposed to the risks stemming from the closure of some top banks, notably Silvergate and Silicon Valley Bank (SVB). The company declared that its operations will continue regardless of these closures.
Signature Bank Funds Still Secure
Reports also indicated that Argo Blockchain had secured some of its funds in Signature Bank, which later collapsed after Silvergate and SVB. However, as of March 13th, these funds were still safe and available to users due to a statement released by the Federal Deposit Insurance Corporation (FDIC), United States Department of the Treasury, and Federal Reserve on the same day.
FDIC Receives Approval To Transfer Assets
The FDIC received approval from New York State’s Department of Financial Services (NYDFS) to be the receiver for Signature Bank’s assets. This mandate allowed them to transfer all user assets from Signature Bank into Signature Bridge Bank in order to increase safety levels for depositors like Argo Blockchain.
Customers Can Access Funds Through Checks & ATMs
The NYDFS’ instruction also gave FDIC oversight over ongoing operations at Signature Bridge bank, meaning all borrowers and depositors in Signature bank would become customers of this new bank with access to their funds through debit cards, ATMs, checks and more regular transactions as usual.
Crypto Market Affected By Collapse Of Top Banks
The recent collapse of top banks created chaos in the crypto market and affected many firms including those exposed to these banks who felt its effects immediately. But thankfully Argo Blockchain confirmed they were not among those with funds tied up in these institutions so their operations could continue without disruption or financial losses.